Differences in income can be accounted for by differences in:

Question

Quizplus · Accepted Answer

All of the factors listed (preferences toward risk, age, education, and preferences toward leisure) can potentially contribute to differences in income. People with higher levels of education may have more specialized skills that are in higher demand, while older individuals may have accumulated more experience and seniority in their careers. Preferences toward risk and leisure can also impact career choices and earning potential. Therefore, all of these factors should be considered when trying to explain why some individuals earn higher incomes than others.

Differences in Income Can Be Accounted for by Differences In